The present invention relates to systems and methods to support import-export transactions. More particularly, it includes methods and systems for generation of bank-required documents that are consistent with a documentary credit (DC) instrument and collaborative application for or amendment of the DC instrument.
DC instruments, including letters of credit (LC), have long been used to assure payment to sellers or suppliers, especially when the buyer is remote (international transactions) or lacks an ongoing relationship with the seller. Typically, a buyer solicits issuance of a DC instrument from an issuing bank with which the buyer has a banking relationship, sometimes using an application such as depicted in FIGS. 4A-D. The buyer and seller negotiate the terms of the DC instrument, often before the buyer solicits issuance. The issuing bank sends the operative LC instrument to an advising bank. The seller ships goods, in reliance on and in accordance with the DC. If amendments are needed, they may also negotiate the terms of the amendment to the DC instrument.
It has long been recognized that processes of DC issuance and redemption are fraught with opportunities for error and resulting frustration. For instance, Tozzoli et al. in U.S. Pat. No. 6,151,588 comment in column 3 on how an issuing bank requires that all of the documents called for in a LC exactly correspond with the terms of the LC, and withholds payment to the seller even due to typographical errors and minor misspellings, with resulting frustration to sellers seeking payment. Tradecard, Inc., the assignee of the '588 patent, responded to this and other long-identified problems with DCs by creating an alternative funding mechanism, which is described in the '588 patent and their “Financial Supply Chain Automation: The Missing Link in Supply Chain Management White Paper” (PDF file created 29 Apr. 2002) available from their web site www.Tradecard.com. Tradecard sidestepped the DC problems, instead of solving them.
Accordingly, an opportunity arises to devise methods and systems that reduce errors in application for, issuance and redemption of DC instruments. Such methods and systems may generate documents required for a bank to redeem a DC instrument using data mapped from a DC template. Such methods and systems may encourage buyer and seller to collaboratively prepare a DC application and to electronically present applications for issuance and for redemption of a DC instrument. Such methods and systems may encourage buyer and seller to collaboratively prepare requests for amendment of a DC instrument.